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U.S.-Iran Escalation Reprices Markets as Oil Nears $80

Renewed U.S. strikes with President Trump declaring the interim ceasefire over have pushed oil and Fed‑hike odds higher, prompting rapid reallocations across asset classes.

Overview

  • U.S. forces launched additional strikes on Iran and President Trump said the interim ceasefire was "over," actions that together have sustained a fresh round of hostilities and drawn shipping‑security concerns.
  • Brent crude jumped toward the high $70s per barrel after the escalation, briefly testing around $79–$80, which raised immediate worries about supply through the Strait of Hormuz and near‑term inflation.
  • Global equities sold off sharply on the news then staged selective rebounds, with India’s Sensex and Nifty falling more than 2% on Wednesday before reclaiming some losses the next day.
  • Money markets moved the expected timing of the next Federal Reserve rate increase earlier, government bond yields rose in several countries, and gold and other safe havens saw active flows.
  • Bitcoin spot ETFs recorded roughly $500 million of inflows across two sessions, but on‑chain metrics and Coinbase pricing show U.S. spot demand remains weak and broader crypto accumulation is unconfirmed.